On a diagram with "calories consumed per day" on the horizontal axis and "exercise per day" on the vertical axis,we can draw a line along which your body weight at this moment will remain constant.This line is analogous to how ________ for changing values of the variables on the two axes.
A)the IS curve holds income constant
B)the IS curve holds the demand for money constant
C)the LM curve holds the demand for money constant
D)the LM curve holds income constant

Question

Quizplus · Accepted Answer

The LM curve represents combinations of interest rates and levels of real income for which the demand for money equals the supply of money, holding the demand for money constant as income and interest rates change. This is analogous to the line on the diagram where body weight remains constant for different values of calories consumed and exercise per day, as it also represents a balance (in this case, between calories consumed and burned).

On a Diagram with "Calories Consumed Per Day" on the Horizontal